St Peter's church minister Rod Chiswell confirmed the move had been made months ago, after organisers came to the "hard" decision not to plan out, or try to finance, the twilight event during COVID-19 restrictions.

Mr Chiswell said the festive community outing could see up to 3,000 people picnicking in Bicentennial Park during a normal year, and a carolling event on that scale was simply not possible in the "current climate".

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He said collecting donations and sponsors for the event - which costs about $15,000 to throw - needed to start months in advance.

"Obviously some people will be sad and we're sad about it too, but it's certainly something we want to do again in the years to come, we're definitely not shelving it," he said.

Despite the decision by the combined churches to call off the main show - which normally has Christmas carols and performers on a stage in Bicentennial Park - Mr Chiswell said families are still looking for ways to connect this silly season.

The minister said local churches are adapting by putting on their own smaller Christmas carol events instead.

"People are looking for opportunities to connect after the year we've had and Christmas, from my perspective as a Christian minister, is a time of great hope and looking beyond the current circumstances to the bigger picture," Mr Chiswell said.

"Even if it's on a smaller scale, [we] want to remind people of that."

St Peter's church will host a backyard-style Christmas concert on December 18, and can host about 380 people under the current COVID rules.

"It has been a tough year, but it has helped people remember the value of community and how good it is to gather ... it's a good season to remind us of just how important it is," Mr Chiswell said.

This year will mark the first in more than a decade that the event has been cancelled.